A quarter in review – key DC market trends and developments to 30 June 2023
We are pleased to share our latest DC market update based on market activity to 30 June 2023. This report follows-on from the series of DC default reviews we published over the last few years.
We’ll be releasing these reviews on a quarterly basis in order to share the latest snapshot of the DC market and the key trends/developments we have identified, along with more detailed DC insights pieces further exploring these trends and developments from the industry.
In this Q2 update, we comment on:
- The continued reliance on equities as the driver of returns in the growth phase of DC defaults – is it time to review regional concentration risk and currency hedging?
- How has duration impacted returns towards retirement – should you stick or twist?
- The increase in investment sophistication across the DC market – how can you exploit opportunities within fixed income (given the new interest rate environment)?
- What might post-retirement solutions for DC look like? And how might the momentum towards private market assets open up doors for DC investors?
It’s an incredibly exciting time to be working on DC schemes and Master Trusts, with an acceleration in the pace of change in the market. We are seeing increased product innovation and sophistication; a renewed trajectory towards private market assets following the Mansion House speech; and a recognition of the importance of developing appropriate post-retirement solutions. The aim of these new quarterly updates is to provide our readers with the latest insights and developments in the DC investment market.
Senior DC Investment Consultant